By now, you have heard enough about crypto-currency. You've probably heard how several people have gone from abject poverty or financial mediocrity to dream fortunes and success in just a few years - for some, in just a few months. You may have listened to several online "experts" talk about the glorious potential and sheer lucrativeness of getting into the crypto business. You may even know people who are interested in crypto but seem far too immersed to talk about it. And, in your mind, you know how important crypto is. Maybe you've already done some research before you found this blog. So, you really know, and you want your own slice of the ever-growing crypto pie.

So, welcome to the right place. We're going to tell you how to make money with crypto. No, not how to make a living, but how to make a fortune with crypto.

Reminder about crypto

Now, why did we call all the crypto news "noise"? Well, the news is just "noise" until you understand the factors involved. So let's go over a few ways to make money.

What is crypto?

  • Crypto currency is a decentralized means of transaction that is used for online trading. It is like money, but it is not controlled by central banks. The most commonly used are Bitcoin and Ethereum.
  • Crypto-currencies operate on a blockchain, the digital record of crypto-currency transactions. Many people buy and sell crypto-currencies, but their value comes primarily from investments.
  • Using crypto-currency exchange platforms and wallet apps like Binance and Coinbase, users convert centralized currencies like the dollar into crypto-currencies and make transactions as the value of their investment increases.
  • In addition, cryptos increase in value when large companies announce that they will use them to make transactions or when celebrities promote them. Therefore, they can lose value if companies and celebrities relegate them or if too many people decide to sell them at a certain time.

Now, let's talk about how you can make money with crypto.

How to make money with crypto currencies

Invest

First of all, let's talk about the long term.

You've probably heard of the traditional "buy and hold" market strategy. Well, this involves an investor buying an asset when the price is low, holding it for a while, and then selling it at a profit when the demand for that asset is much higher. With this strategy, it is vital to buy assets when their price is falling. But you're taking a risk because you don't know exactly which asset will be profitable. So, in effect, you have to hope for the best and make an educated guess. But if your predictions turn out to be correct, as was the case with bitcoin predictions a decade ago, you'll be the one smiling from ear to ear while others complain about the economy.

So, which monetary assets should you buy? Well-established coins like Bitcoin and Ethereum rise and fall in value all the time, but if you look at their charts, you'll see that these coins have been climbing more steadily than they've fallen for quite some time now. Newer coins are being introduced to the market at higher values than they can sustain over time. As people hope to recreate history with these new coins, they buy them at high prices and expect prices to rise, but they usually do the opposite and may even disappear due to a lack of buyers in the market. It is therefore imperative to read a coin's white paper before investing for the long term.

Trading

Now let's talk about the short term.

You have to understand the volatile nature of the crypto-currency market. In the short term, you will find that prices rise and fall in unusual ways. You need to understand the technical and analytical aspects to make profits when trading. Study the market chart to see how different coins perform, so you know when and where to buy and sell.

Your ability to use analysis and techniques to know that the value of a coin will increase in a short period of time will determine your purchase, and knowing that the value will decrease will determine your sale. So you can make a profit whether you decide to buy or sell. It takes commitment and time to learn the skills necessary to make a profit trading with crypto-currencies in the short term, but there is no doubt that becoming a master trader pays off.

Strengthen your trading strategy

To minimize the risks you take and maximize your profits, stick to the following principles:

  • Diversify - trade with different coins to spread your resources and give yourself more chances of success instead of putting all your eggs in one basket.
  • Be minimalist - go for a verified trade with low fees, so you trade for very little.
  • Time is of the essence - choose when you trade. There are peak periods every 24 hours. So choose your schedule and stick to it daily.
  • Know what's new - information is power, so stay on top of the latest market news.
  • Stop your losses - schedule stop-loss orders on every trade; many recommend a minimum profit/loss ratio of 2:1.

Lending and borrowing

Now, how about using your profits to earn more profits by lending? Crypto-currency lending is a type of transaction that is provided through an agreement between a lender and a borrower. The borrower signs a contract in which he gives his crypto-currencies as collateral to the lender in exchange for other crypto-currencies or cash. In addition, the borrower agrees to pay interest to the lender.

Crypto-currency exchanges like Nexo, SALT Lending, Celsius and Oasis support crypto-currency loans. The borrower and lender are individuals, not organizations like banks.

Lending crypto-currencies is not without risk. However, it is a way to make your crypto work for you and make more profit. So take the plunge and see what you can catch.

Milestone

The energy required to run a PoW (Proof of Work) as a means of validation in a blockchain is very high. Thus, PoS (Proof of Stake) has been developed and seems to be a better validation algorithm. Therefore, staking is a way to validate cryptographic transactions.

To stake, you buy coins that you don't spend but lock in a crypto-currency wallet. Your coins are then used to validate a transaction through a PoS network. This way, the network remains secure and transactions can be verified. You then receive a reward that can be compared to interest paid by a bank.

Transaction validators are chosen by the PoS algorithm based on the number of coins you stake, which makes staking more energy-efficient than mining crypto-currencies. Plus, you don't need to buy expensive hardware, as the network does the work, although you do have to watch out for price fluctuations.

Airdrops

This is not the best way to get free crypto-currencies, as an airdrop has the biggest risk. Many investors avoid it.

Airdrops happen when a developer wants to back a new crypto. So, they give away free coins to entice traders to engage the crypto in the market. You can see when airdrops are happening.

Be wary of any new crypto project. Hackers often use airdrops and ICOs (Initial Coin Offerings) as scams. Truth be told, most coins that are issued as airdrops don't have much investment value. Therefore, if you are a novice, we advise you to stick to the well-known coins such as Bitcoin and Ethereum.

Dividends

You can also earn dividends with crypto-currencies. This method works just like investing in stocks and bonds.

Dividends are payments that are made to the shareholders of a company. For example, the company makes a profit for the quarter; it distributes the profit to the owners based on their shares.

You won't see large payments in your account if your balance isn't high, but small drops can become a sea over time. So you can look for crypto-currencies that pay dividends and buy a share.

Crypto-currency dividends differ from stock dividends because they are paid in tokens instead of cash.

Mining

Crypto-currency mining is what the crypto-currency pioneers did to make the market what it is today. It relies on the PoW (Proof of Work) consensus mechanism to validate transactions and secure a network. Significant initial and ongoing expertise and investment is required to get this process started, as well as specialized hardware. A desktop computer could have been used when crypto was first launched, but that is no longer the case.
Social media for crypto
Creating content for various blockchain-based social media platforms will allow you to earn rewards in the form of native coins and tokens, which you can then trade. Engaging in crypto social media is a great opportunity to make money with crypto.

Conclusion

So, how do you make money with crypto? To make money with crypto right now, we suggest you combine the methods we've discussed in the way that works best for you. The crypto-currency space requires willingness and skill, but the potential is high when working and making money with cryptos. We will likely see new future forms of wealth creation with the use of cryptos. You might even be the person who invents the next big thing in this field.